Defence funding was increased in the 2001-02 Commonwealth Budget and forward estimates to address a number of specific priorities detailed in the 2000 Defence White Paper. The White Paper provided a funding commitment for Defence of around $28.5 billion (b) (in 2006-07 dollars) over the decade from 2001-02. This funding injection equates to an increase of some 3% of average real growth per year over the period.
In addition to the implementation of the White Paper, the Government has given Defence a number of specific directions to meet emerging strategic priorities. Key 2006-07 Budget measures include:
Graph 4.3 reflects the significance of both employee costs and the investment in specialist military equipment and infrastructure in delivering Defence capability. The increased share for investment is consistent with progress towards acquiring the equipment capabilities outlined in the Defence White Paper. Longer-term projections indicate increases in personnel costs due to growth towards a larger ADF as specified in the White Paper.
- supplementation of $623 million (m) for the conduct of ADF operations including:
- the continued ADF contribution to stabilisation and reconstruction activities in Iraq (an additional $392.7m over three years);
- the continued ADF contribution, including deploying and sustaining the Reconstruction Task Force, to Afghanistan (an additional $218.2m over three years); and
- the ADF contribution to the surveillance of Australia’s northern approaches ($12.1m);
- funding to improve the sustainability and survivability of the Army in operational conditions ($440.5m over four years); and
- funding to purchase C-17 Globemaster III heavy airlifters to enhance Defence’s heavy airlift capability ($1,918.6m over four years).